Egypt responds to Moody’s changing its future outlook to negative

Egypt responds to Moody’s changing its future outlook to negative

Egypt’s Finance Ministry assured that the government is working to manage macroeconomic risks with flexibility to contain successive external shocks, and is dealing in a balanced and careful manner with the negative impact of geopolitical tensions on economic activity.

In a Friday state the government added that it is keen to meet the basic needs of citizens and expand social protection while adhering to financial discipline.

Moody’s, the international credit rating agency, announced on Thursday evening that Egypt’s future outlook was reduced from “stable” to “negative.”

Economists described the decision as expected, and portends a new reduction in the credit rating during the coming period.

Commenting on Moody’s fixing Egypt’s sovereign credit rating at “Caa1” while changing the future outlook to negative, the ministry said that Moody’s decision did not take into account the government’s current efforts.

It explained that the IPO program enhances “our ability to meet financing needs during the next two years, and contributes to attracting more investment flows and reducing the need for external financing.”

The ministry noted the state’s success in exiting some economic activities worth US$3.5 billion within the IPO program, which will help increase foreign exchange flows to cover the needs of the Egyptian economy.

The statement indicated work to